Archives for category: Fraud

The U.S. Education Department’s accreditation advisory committee will discuss the conversion of for-profit colleges to non-profit status at a meeting from May 22-24. The chair of the National Advisory Committee on Institutional Quality and Integrity (NACIQI) is Art Keiser, the chancellor and CEO of Keiser University. This Florida-based school converted from for-profit to non-profit status in 2011, which is the subject of the discussion. Some Senate Democrats, led by Senator Elizabeth Warren, have urged that he recuse himself, since he obviously has a conflict of interest. Secretary DeVos will decide whether he does. Or will he have the decency to do it himself? What could possibly be dubious about a college headed by its founder and namesake?

Keiser for many years was the face of for-profit higher education, even chaired the for-profit’s lobbying group in D.C., and now he in charge of regulating the industry? What a bad joke Betsy DeVos has pulled on the nation. Keiser led the way in converting his own namesake institution from for-profit to non-profit, but the Miami Herald reported that it was still lucrative.

Robert Shireman of the Century Foundation developed a very informative and important graphic about the sham of converting colleges from for-profit to non-profit. You should see it. The link is at the end of this post.

In his email to me, he noted the similarities between ostensibly non-profit charters that are actually managed by a for-profit, and “colleges” that convert to non-profit status yet remain for profit in fact.

He makes the following points:

1. The abuses of students and taxpayers have occurred predominantly at for-profit colleges.

2. That’s because removing investors from power positions in schools (being nonprofit) reduces the incentives for exploitative and predatory practices.

3. For-profit colleges want the “nonprofit” label but without properly separating profit from corporate control.

He adds, “These problems keep recurring over history. NACIQI’s leadership is needed to assure that nonprofits, at least, are safe for students and taxpayers.”

But, can NACIQI regulate these institutions, as it is supposed to do, when its chair heads an institution that is an exemplar of the institutions under investigation?

Read the report here.

The largest virtual charter school in Ohio was the Electronic Classroom of Tomorrow (ECOT). Its for-profit owner William Lager collected over $1 billion in taxpayer dollars since it opened in 2000. He gave campaign contributions to state officials, and they looked the other way. They even spoke at his commencement ceremonies. When the state actually audited ECOT, it found inflated enrollments and went to court to collect money from Lager. ECOT lost its authorizer, and Lager declared bankruptcy.

Most of ECOT’s students have transferred to another online charter, the Ohio Virtual Academy, owned by Michael Milken’s for-profit K12 Inc.

K12 Inc. has asked the state to hold it harmless for the expected low academic performance of the transfer students from ECOT.

Will voters hold state officials accountable for allowing these frauds to continue collecting money from them?

This is a scandal.

When Betsy DeVos was appointed as Secretary of Education, she held investments in the for-profit higher education sector, which is known for fraud, high attrition, and low graduation rates. Presumably, she divested, but it is not clear whether she did.

Now she has turned over the job of revising regulations of the for-profit colleges to former high-level executives from the same sector.

Does anyone doubt that their mission is to remove all constraints on these quasi-criminal enterprises that have defrauded millions of students and gotten away scot-free?

Education Department adviser Robert Eitel, hired by the Trump administration last February after four years in the for-profit college industry, played a role in suspending an Obama-era policy known as “borrower defense to repayment.” The rule made it easier for students, enticed into taking out five-figure loans on promises that they would get good jobs, to file for debt relief. It also allowed the government to recoup the losses from the schools.

Ultimately, those potentially most impacted include many predominantly low-income, and minority students disproportionately represented at for-profit colleges and often saddled with high student loans and facing poor job prospects.

Education policy changes involving for-profit colleges has been a touchy subject since Secretary Betsy DeVos, who entered office with investments tied to the for-profit college sector, took over the department following Trump’s election.

The revelations about Eitel’s engagement in borrower defense policy come on the heels of a New York Times report that the department has been dismantling a team investigating widespread abuses by for-profit colleges. Education spokeswoman Liz Hill told the Times the group shrunk because of attrition and said no new hires with ties to the for-profit college industry had influenced the group’s work.

Eitel, who had also worked as an Education Department attorney under President George W. Bush, isn’t the only for-profit college executive DeVos has brought into the Department. The secretary also drew ire when she tapped Julian Schmoke, Jr., a former dean at the for-profit college DeVry, to lead the department’s Student Aid Enforcement Unit last August.

There’s no indication Schmoke was involved in the delay of the borrower defense rule.

Eitel — a former vice president at two for-profit college operators, Bridgepoint Education and Career Education Corp. — joined the Trump administration in February as part of a so-called “beachhead team” formed to usher the agency through the transition.

For two months, he worked at the Education Department while on unpaid leave from Bridgepoint, according to financial disclosure forms. He formally gave up his position at Bridgepoint in April, when he was hired on a permanent basis as a senior adviser to DeVos.

Although Education Departments ethics officials maintain working on borrower defense wouldn’t have violated his ethics agreement, Eitel has up until now refused to say publicly whether he had a hand in the borrower defense delay.

Eitel’s Involvement in Borrower Defense

On June 14, DeVos announced she was suspending the borrower defense rule, arguing that under the rule, “all one had to do was raise his or her hands to be entitled to so-called free-money.”

Emails obtained by the executive branch watchdog group Democracy Forward and shared with ABC News show in the days leading up to the announcement, Eitel circulated borrower defense talking points to staffers, edited background documents, and even signed off on the official delay notice.

This is a classic case of the fox guarding the henhouse. Or worse.

Is this Trump University’s Revenge?

Two years ago, the New York Times published a front-page story about the scandal of Ohio’s Electronic Classroom of Tomorrow (ECOT), which boasted “the largest graduation class in the nation” but also had the lowest graduation rate in the nation and referred to it as a “dropout factory.”

The article said ECOT was enriching its owner, not its students.

But while some students may not have found success at the school, the Electronic Classroom has richly rewarded private companies affiliated with its founder, William Lager, a software executive.

When students enroll in the Electronic Classroom or in other online charters, a proportion of the state money allotted for each pupil is redirected from traditional school districts to the cyberschools. At the Electronic Classroom, which Mr. Lager founded in 2000, the money has been used to help enrich for-profit companies that he leads. Those companies provide school services, including instructional materials and public relations.

For example, in the 2014 fiscal year, the last year for which federal tax filings were available, the school paid the companies associated with Mr. Lager nearly $23 million, or about one-fifth of the nearly $115 million in government funds it took in.

Dave Yost, the auditor for the state of Ohio, is running for State Attorney General. Recently, he has made much of his audits of the failed ECOT, which collected about $1 billion from taxpayers over its 18-year history but recently shut down when state audits revealed its inflated enrollments, and the state demanded repayment of $80 million.

The Democratic party of Ohio is calling out Yost for ignoring the ECOT scandals until this past year. Yost posted a “timeline” to show that he had been on top of the ECOT problem, but Democrats pointed out more than 20 omissions from Yost’s timeline.

Highlights from more than 20 omissions we identified:

*Yost’s timeline draws reporters’ attention to his 2015 and 2016 charter attendance audits. What it doesn’t say is Yost exempted ECOT and other e-schools from both efforts.
*Yost’s timeline does not include the three awards for bookkeeping the auditor gave the school.
*Yost’s timeline does not include the nearly $30,000 in campaign contributions he took from ECOT.

Innovation Ohio tweeted:

@innovationohio

As Dave Yost tries to mop up his disastrous handling of the ECOT scandal with his 7 years too late audit findings, see what he had to say just a couple years ago when he gave ECOT an ACCOUNTING AWARD for having “best practices in place” and having “no problems with the audit”

Betsy DeVos wants more ECOTs, more K12 Inc. online virtual charters. Study after study has shown that they are ineffective educationally but highly profitable. DeVos was an investor in K12 Inc., and probably divested when she became Secretary but whether or not she is an investor, she supports the online charter sector.

 

Jan Resseger writes here about the sordid decision to hire people closely aligned with the interests of the for-profit higher education industry to regulate it. This amounts to hiring the fox to supervise the henhouse. This industry is known for predatory behavior, targeting the most vulnerable students: veterans, their widows, the poor. It is also known for providing subpar education and printing diplomas that are often worthless. Think Trump University.

We are approaching a level of spoils, squalor, and legal corruption that has not been seen since the days of Teapot Dome.

 

The Blog for Arizona describes the inside story of the Arizona teachers’ strike and Governor Doug Ducey’s feckless efforts to stop the strike without making any concrete concessions to teachers.

“Doug Ducey, the ice cream man hired by Koch Industries to run their Southwest subsidiary formerly known as the State of Arizona, is a practitioner of propaganda over policy. He rolls out a glossy media P.R. campaign and gets his corporate benefactors to pay for advertising praising him for his P.R. campaign. The substance of the actual policy gets lost.

“Ducey did this for his #ClassroomsFirst initiative in which he declared himself to be the “education governor,” he did this to sell his unconstitutional Prop. 123 to settle the education inflation adjustment lawsuit against the state so that the state would not have to pay restitution for funds stolen by our GOP-controlled legislature, and he is doing it yet again with his #20by2020 teacher pay proposal.

“Ducey’s dark money “Kochtopus” allies in the Arizona Chamber of Commerce and Industry started a new group called the “Arizona Education Project” and fielded a $1 million soft-sell TV ad blitz to say  “Arizona schools are making progress.” Arizona “Ground Zero” for Koch Attack on Public Education. As the Arizona Daily Stareditorialized, “no number of feel-good TV spots will change the fact that Arizona comes in last, or almost last, in numerous rankings of per-pupil state spending in the nation.” Education ad campaign doesn’t change the facts.

“The “Kochtopus” Death Star, the Goldwater Institute, is now threatening school districts with lawsuits for closing during the #RedforEd teacher walkouts, no doubt on Gov. Ducey’s behalf. Goldwater Institute sends letter to schools calling Arizona teacher walkout unconstitutional. Per usual, the Goldwater Institute is full of shit and bluster. The actual point of their intimidation campaign is a reminder  that “We own this state, and you will obey!

”With more than 50,000 educators and their supporters marching on the state capitol this week in a sea of red, our self-described “education governor” (sic) refused to meet with education leaders, Ducey to meet with ‘decision makers,’ not teachers to talk about salaries, and instead negotiated a “deal” with his GOP legislative leaders in a one-sided negotiation that did not include the teachers. Governor announces budget deal with teacher pay raise — but gives no details.”

Republican leaders negotiated a deal among themselves, refusing to talk to teachers. The presence of 50,000 teachers wearing #RedForEd did not earn them a seat at the table. One side talking to itself, said “Arizona Republic”columnist E.J. Montini, is not a deal. One little detail: the Republican Plan is to distribute any new funding to districts and let them decide whether to increase teachers’ salaries. Some pay raise that is!

Blog for Arizona writes:

”You have this weekend to contact your state legislators and to let them know that without new tax revenue dedicated to public education for teacher raises and to restore the billions of dollars cut by our GOP-controlled legislature over the past decade, there is no “deal.” And if they vote for this budget gimmick of “robbing Peter to pay Paul” yet again, you will be voting them out of office in November. Enough is enough.”

 

 

 

Stephen Dyer says there is now little or no question that crimes were committed by ECOT (the late, unlamented Electronic Classroom of Tomorrow).

Someone knowingly inflated enrollment to collect millions from the state.

Who done it?

“Because it now appears that we have a smoking gun indicating that officials at the Electronic Classroom of Tomorrow formed the necessary mens rea to be charged with crimes.

“According to an Associated Press story today (which ran all over the place, but I’ll link to my former employer’s version), people at ECOT — at one point the largest single school in the nation — were ordered to deliberately inflate enrollment so the school could keep getting paid $100 million plus to “educate” children, even if those children weren’t actually at ECOT.

“ECOT infamously did a remarkably poor job of educating those who were, by the way. How poor? Only 109 of 3,794 ECOT graduates from 2010 earned a college degree within 6 years of graduating.”

B

 

Guy Brandenburg is a retired teacher of mathematics who taught in the D.C. public schools. He was very likely the first person to publicly explode the myth of Michelle Rhee, having pursued her initial claims about miraculously raising the scores of the students she taught as a new TFA teacher from the 13th percentile to the 90th percentile.

He continues to watch the D.C. schools, and he recently attended the public unveiling of NAEP scores for 2017. He was reviewing them in separate posts, and I invited him to combine them into a single post. He generously agreed to do so.

For his diligence and persistence as a researcher and whistle-blower, I name Guy Brandenburg to the honor roll of this blog.

He writes:

NATIONAL TEST SCORES IN DC WERE RISING FASTER UNDER THE ELECTED SCHOOL BOARD THAN THEY HAVE BEEN DOING UNDER THE APPOINTED CHANCELLORS

By Guy Brandenburg

Add one more to the long list of recent DC public education scandals* in the era of education ‘reform’:

DC’s NAEP** test scores are increasing at a lower rate now (after the elected school board was abolished in 2007) than they were in the decade before that.

This is true in every single subgroup I looked at: Blacks, Hispanics, Whites, 4th graders, 8th graders, in reading, and in math.

Forget what you’ve heard about DC being the fastest-growing school district. Our NAEP scores were going up faster before our first Chancellor, Michelle Rhee, was appointed than they have been doing since that date.

Last week, the 2017 NAEP results were announced at the National Press Club building here on 14th Street NW, and I went in person to see and compare the results of 10 years of education ‘reform’ after 2007 with the previous decade. When I and others used the NAEP database and separated out average scale scores for black, Hispanic, and white students in DC, at the 4th and 8th grade levels, in both reading and math, even I was shocked:

In every single one of these twelve sub-groups, the rate of change in scores was WORSE (i.e., lower) after 2007 (when the chancellors took over) than it was before that date (when we still had an elected school board).
I published the raw data, taken from the NAEP database, as well as graphs and short analyses, on my blog, (gfbrandenburg.wordpress.com) which you can inspect if you like.

I will give you two examples:

• Black 4th grade students in DC in math (see https://bit.ly/2JbORad ):

o In the year 2000, the first year for which I had comparable data, that group got an average scale score of 188 (on a scale of 0 – 500). In the year 2007, the last year under the elected school board, their average scale score was 209, which is an increase of 21 points in 7 years, for an average increase of 3.0 points per year, pre-‘reform’.

o After a decade of ‘reform’ DC’s black fourth grade students ended up earning an average scale score of 224, which is an increase of 15 points over 10 years. That works out to an average growth of 1.5 points per year, under direct mayoral control.

o So, in other words, Hispanic fourth graders in DC made twice the rate of progress on the math NAEP under the elected school board than they did under Chancellors Rhee, Henderson, and Wilson.

• Hispanic 8th grade students in DC in reading (see: https://bit.ly/2HhSP0z )

o In 1998, the first year for which I had data, Hispanic 8th graders in DC got an average scale score of 246 (again on a scale of 0-500). In 2007, which is the last year under the elected board of education, they earned an average scale score of 249, which is an increase of only 3 points.

o However, in 2017, their counterparts received an average scale score of 242. Yes, the score went DOWN by 7 points.

o So, under the elected board of education, the scores for 8th grade Latinx students went up a little bit. But under direct mayoral control and education ‘reform’, their scores actually dropped.

That’s only two examples. There are actually twelve such subgroups (3 ethnicities, times 2 grade levels, times 2 subjects), and in every single case progress was worse after 2007 than it was beforehand.

Not a single exception.

You can see my last blog post on this, with links to other ones, here:

https://gfbrandenburg.wordpress.com/2018/04/20/progress-or-not-for-dcs-8th-graders-on-the-math-naep/ or https://bit.ly/2K3UyZ1 .

Amazing.

Why isn’t there more outrage?

*For many years, DC officials and the editorial board of the Washington Post have been bragging that the educational ‘reforms’ enacted under Chancellor Michelle Rhee and her successors have made DCPS the fastest-improving school district in the entire nation. (See https://wapo.st/2qPRSGw or https://wapo.st/2qJn7Dh for just two examples.)

It didn’t matter how many lies Chancellor Rhee told about her own mythical successes in a privately run school in Baltimore (see https://wapo.st/2K28Vgy ). She also got away with falsehoods about the necessity of firing hundreds of teachers mid-year for allegedly being sexual predators or abusers of children (see https://wapo.st/2qNGxqB ); there were always acolytes like Richard Whitmire willing to cheer her on publicly (see https://wapo.st/2HC0zOj ), even though the charges were false.

A lot of stories about widespread fraud in the District of Columbia public school system have hit the front pages recently. Examples:

• Teachers and administrators were pressured to give passing grades and diplomas to students who missed so much school (and did so little work) that they were ineligible to pass – roughly one-third of last year’s graduating class. (see https://bit.ly/2ngmemi ) You may recall that the rising official (but fake) high school graduation rate in Washington was a used as a sign that the reforms under direct mayoral control of education had led to dramatic improvements in education here.

• Schools pretended that their out-of-school suspension rates had been dropping, when in actual fact, they simply were suspending students without recording those actions in the system. (see https://wapo.st/2HhbARS )

• Less than half of the 2018 senior class is on track to graduate because of truancy, failed classes, and the like. (see https://bit.ly/2K5DFx9 )

• High-ranking city officials, up to and including the Chancellor himself, cheated the system by having their own children bypass long waiting lists and get admitted to favored schools. (see https://wapo.st/2Hk3HLi )

• A major scandal in 2011 about adults erasing and changing student answer sheets on the DC-CAS test at many schools in DC in order to earn bonuses and promotions was unfortunately swept under the rug. (see https://bit.ly/2HR4c0q )

• About those “public” charter schools that were going to do such a miraculous job in educating low-income black or brown children that DCPS teachers supposedly refused to teach? Well, at least forty-six of those charter schools (yes, 46!) have been closed down so far, either for theft, poor performance on tests, low enrollment, or other problems. (see https://bit.ly/2JcxIx9 ).

**Data notes:

A. NAEP, or the National Assessment of Educational Progress, is given about every two years to a carefully chosen representative sample of students all over the USA. It has a searchable database that anybody with a little bit of persistence can learn to use: https://bit.ly/2F5LHlS .

B. I did not do any comparable measurements for Asian-Americans or Native Americans or other such ethnic/racial groups because their populations in DC are so small that in most years, NAEP doesn’t report any data at all for them.

C. In the past, I did not find big differences between the scores of boys and girls, so I didn’t bother looking this time.

D. Other categories I could have looked at, but didn’t, include: special education students; students whose first language isn’t English; economically disadvantaged students; the various percentiles; and those just in DCPS versus all students in DC versus charter school students. Feel free to do so, and report what you find!

E. My reason for not including figures separated out for only DCPS, and only DC Charter Schools, is that NAEP didn’t provide that data before about 2011. I also figured that the charter schools and the regular public schools, together, are in fact the de-facto public education system that has grown under both the formerly elected school board and the current mayoral system, so it was best to combine the two together.

F. I would like to thank Mary Levy for compiling lots of data about education in DC, and Matthew Frumin for pointing out these trends. I would also like to thank many DC students, parents, and teachers (current or otherwise) who have told me their stories.

 

After the Sandy Hook massacre, Alex Jones made his unsavory reputation insisting that the massacre of children and staff in Newtown, Connecticut, was a hoax, elaborately staged by professional actors.

Two of the parents whose children were killed have sued Alex Jones for defamation.

Mercedes Schneider has the story here.

It’s about time that this malicious propagandist was brought to justice.

 

The Los Angeles school board is split 4-3, with charter advocates holding the majority. The decisive vote belongs to Ref Rodriguez, who is currently awaiting trial on multiple felony indictments for campaign finance violations.

The board appears poised to select Austin Beutner as its new superintendent, despite the fact that he has no experience in education.

Beutner was an investment banker and managed a private equity firm. His firm, Evercore, financed the purchase of American Media, which publishes the “National Enquirer.” Beutner was a member of the board of that scandal sheet. He is a billionaire. He briefly served as publisher of the Los Angeles Times until he was ousted. He is close to Eli Broad.

Interestingly, as a side note, Beutner was born in Holland, Michigan, and his father was a top executive at Amway. That should give him easy access to Betsy DeVos and help speed the privatization of public schools in Los Angeles.

Thought: If Ref Rodriguez is convicted and has to leave the board, the superintendent will have to lead a 3-3 Board. Too bad the LAUSD is unwilling to select a consensus candidate. Very short-sightrd

http://www.latimes.com/local/lanow/la-me-edu-beutner-nonprofit-faulted-20180415-story.html